For Malaysia, strengthening the domestic defence industry is a strategic imperative anchored on three core pillars: resources, technology, and capital. – NSTP/NABILA ADLINA AZAHARINABILA ADLINA AZAHARI
IN an increasingly uncertain global geopolitical landscape, the defence industry is no longer merely an instrument of national security; it has also become a key driver of economic resilience and national sovereignty.
For Malaysia, strengthening the domestic defence industry is a strategic imperative anchored on three core pillars: resources, technology, and capital.
These elements must be mobilised in an integrated manner to ensure that Malaysia is not only capable of safeguarding its national security interests, but also of developing a high-value industry that contributes to long-term economic growth.
Resources in the context of Malaysia’s defence industry extend beyond physical assets or raw materials.
They encompass highly skilled human capital, domestic industrial capabilities, strategic supply chains, and institutional capacity. Malaysia possesses advantages in its manufacturing base, engineering expertise, and a robust maintenance, repair and overhaul (MRO) sector, particularly in aerospace and maritime industries.
However, the key challenge lies in ensuring that these capabilities are more comprehensively aligned with the operational requirements of the Malaysian Armed Forces.
A heavy reliance on imported components and critical systems exposes the country to supply chain disruptions and geopolitical pressures. As such, efforts to increase local content, develop capable domestic vendors, and build indigenous technical expertise should be viewed as strategic investments in national security.
In the era of modern warfare, military superiority is increasingly determined by technological mastery rather than sheer numbers of assets. Technologies such as unmanned systems, artificial intelligence, cyber security, smart sensing, and data integration have reshaped the global defence landscape.
For Malaysia, the priority is not merely to acquire technology, but to ensure effective technology transfer and the development of local capabilities. Defence industry collaborations with strategic foreign partners must be structured more purposefully to support domestic research and development, research institutions, universities, and local firms.
The defence industry also holds significant potential as a catalyst for national innovation. Many defence technologies have dual-use applications that can be leveraged in civilian sectors such as maritime security, disaster management, aerospace, and digital technologies, thereby broadening economic spillovers for the country.
The defence industry undeniably requires substantial and long-term capital. However, defence spending should not be viewed solely as a fiscal burden, but rather as a strategic investment that generates economic returns, high-skilled employment, and technological advancement.
Malaysia needs to foster a more conducive financing ecosystem through the involvement of the private sector, financial institutions, strategic funds, and public–private partnerships.
Policy certainty, transparent procurement planning, and strong governance are critical factors in attracting quality investments into the defence industry.
With the right approach, the domestic defence industry has the potential to reduce foreign exchange outflows, increase domestic value-added, and open export opportunities to regional and other developing markets.
The true strength of Malaysia’s defence industry depends on its ability to integrate resources, technology, and capital into a sustainable and competitive ecosystem.
This requires policy coordination across ministries, active industry participation, and a consistent long-term vision.
A strong defence industry is not intended to provoke conflict, but to ensure that the nation possesses credible deterrence capabilities while supporting a high-income economic development agenda.
Strengthening Malaysia’s defence industry is fundamental to protecting sovereignty, building economic resilience, and securing the nation’s future.
